On the 14th of January 2023, Ki Young Ju, the CEO of CryptoQuant, posted on Twitter about a $4 billion worth of Bitcoin futures transaction that triggered a massive liquidation.
For the past 3 hours, someone(s) just bought ~$4B worth of $BTC futures in market orders, and $87M short positions liquidated across all exchanges.https://t.co/JDrkUzPMqq pic.twitter.com/tOrmokB0z3
— Ki Young Ju (@ki_young_ju) January 14, 2023
The price of Bitcoin is seen as the flagship of the crypto space, and the best indicator of the atmosphere of the crypto space.
For the past couple of hours, an entity bought $4 billion worth of BTC futures in the crypto market, which triggered $87 million worth of short-position liquidation across all crypto exchanges.
This has led many users to speculate on the identity of the entity that’s currently capable of mustering that massive amount of funds. And also question the intentions of the entity.
With the price of BTC, which was previously struggling to break through $18.5k, now resting at around $21k, some believe that the entity aims to manipulate the market by artificially increasing the price of Bitcoin, then subsequently massively short the price for profit.
Some other users are speculating that it’s simply the way of the crypto space. The chart would go up and fall, to rally again, and $4 billion is not much money if it’s necessary to maintain the trend and fight FUD plaguing the space. If the price of Bitcoin doesn’t rally in 2023, there’s a belief that more crypto projects would crash, and more users would suffer loss.
🐳 Amongst many of the foreshadowing metrics for this 2023 breakout was the rapidly growing amount of addresses holding 100 to 1,000 $BTC. Price pumps generally occur marketwide when whales accumulate #Bitcoin. The #1 asset in #crypto is +26% in two weeks. https://t.co/JMh83m3mIu pic.twitter.com/FiRTLIc3LB
— Santiment (@santimentfeed) January 14, 2023
Yet, amidst all this drama, Sentiment, an on-chain analytics platform tweeted that the activities of whales have rapidly increased. According to a chart shared, more than 400 new addresses have appeared within two months, holding between 100 to 1000 BTC, which are possibly also part of the factors propelling the breakthrough in BTC’s price.
Price pumps usually occur when whales with diamond hands accumulate BTC affecting the supply.
Yet there’s a final group of speculators that believe no one can point to a single action that’s pumping BTC’s price, aside from a renewal of interest in the crypto industry. With the affairs of 2022, the price crash led to lower volatility in the market, which made investors believe that Bitcoin is currently undervalued.
Duo Nine, a price analyst, believes that if BTC’s price successfully breaks through $22k, it would lead to the end of the bear market.
At this point, all users can do, is speculate and trust the charts.
